Studies show that the best employees are attracted to the companies offering the best benefits.
As a business owner and retirement plan trustee, you have fiduciary obligations to your employees. Acuity will share this responsibility and guide you through the process.
“Retirement plans, including 401(k) plans, are probably more regulated than anything in American economic life short of nuclear power plants,” Stephen Rosenberg, an ERISA attorney with The McCormack Firm “It’s very difficult for any company not large enough to have a dedicated legal staff to hit every hurdle correctly.” he said.
Through the implementation of model portfolios for your participants to choose from, you set your company apart and help your employees better balance their investments and reach their financial goals.
There are a number of different types of retirement plans available in the marketplace today – 401(k) Plans, Profit Sharing Plans, Defined Benefit Plans, 403(b) plans, 457 plans – and each one has a specific purpose and goal. Each plan is unique. At Acuity we work with numerous administrators and record keepers to design your company’s optimum offering. We also provide compliance oversight and state-of-the-art technology for a truly wonderful user experience.
Educating the end user is of the utmost importance, we benchmark to our 90-10-90 goal, where 90% of eligible employees participate, they save at least 10% of their compensation and 90% are in the managed portfolio models. This goal helps ensure a better participant experience and protects the Trustee(s) from liability.
All retirement plans must file Form 5500 with the IRS to report their annual activity. Plans with 100 or more eligible participants are designated as “large plans” and must also attach an audit report from an independent accounting firm. The DOL compiles this audit data to create a benchmarking system for the purpose of identifying plan audit candidates. This technique has resulted in actions in more than 70% of audits conducted annually, with a variety of outcomes including monetary fines, civil actions being filed on behalf of participants and even criminal prosecution.
In 2013, the DOL conducted 3,677 plan audits, 73% of these audits resulted in actions, but there are thousands of plans waiting to be visited in the future. As a retirement plan expert and fiduciary, Acuity has successfully partnered with BrightScope™ who, in unison with the DOL, reviews more than 200 unique data inputs per plan and calculates a single numerical score which defines plan health.
Below is an example pulled from a Google search resulting in a poor rating for Avis. To find your company’s rating, Google your company name followed by BrightScope i.e. “Avis BrightScope” and if you file an annual audit, the information should appear.
Using BrightScope’s unique data points, our consultants can quickly identify plan issues and put you back on a path to success.
“In God we trust; all others must bring data.” W. Edwards Deming